Japan Pushes Blockchain-Based Real-Time Settlement for Stocks and Bonds
Summary
- Japan is pushing to introduce a system that uses blockchain technology to settle stock and bond trades in real time.
- Japan’s Financial Services Agency (FSA), the Finance Ministry, the Bank of Japan (BOJ) and financial institutions plan to launch a study group this summer to begin discussions on a blockchain-based real-time securities settlement system.
- A detailed development plan could be prepared as early as the beginning of 2027, with authorities also considering a broader settlement system by the early 2030s.
Forecast Trend Report by Period
Japan is pushing to introduce a blockchain-based system to settle stock and bond trades in real time, aiming to shorten settlement times and improve the efficiency of financial-market infrastructure.
Nikkei reported on Aug. 25 that Japan’s Financial Services Agency, the Finance Ministry, the Bank of Japan and financial institutions plan to launch a study group this summer to begin discussions on a blockchain-based real-time securities settlement system.
The group will examine ways to exchange cash and securities in real time via blockchain after stock and bond trades are executed. The goal is to shorten a securities settlement process that currently takes time.
A detailed development plan could be prepared as early as the beginning of 2027. Authorities are also considering starting operations within the following few years and building a broader settlement system by the early 2030s.
